China updates 'sensitive sectors' for outbound investment

BEIJING - China on Sunday updated its list of "sensitive sectors" for outbound investment subject to additional regulation, deleting telecoms and electricity and adding the arms industry and several high-profile sectors.

Effective from March 1, investment in overseas projects of telecoms operation, massive land development, and electric mains and power grids need only complete record filings with authorities like other common sectors, with official approval no longer necessary, according to a statement of the National Development and Reform Commission (NDRC).

Those sectors had been considered sensitive according to the previous list published 2014.

Meanwhile, the arms industry was added to the list.

Outbound investment in properties, hotels, cinemas, entertainment, sports clubs, and equity investment funds will also be restricted, according to the NDRC, as the government has stepped up efforts to curb irrational overseas investment.

The NDRC kept cross-border water resource development and news media on the list.

China's non-financial outbound direct investment dropped 29.4 percent to $120 billion in 2017.